RE: Thursday7 May 2019 22:02
Philip Jansen will kick-start his tenure as BT chief executive this week by adopting a bolder approach to fibre investment as part of a plan to return the British telecoms group back to growth. The former Worldpay boss, appointed to run BT last October, has spent his first few months meeting government officials, regulators, unions, staff centres and shareholders to understand the problems that have caused the company’s value to halve over the past three years.On Thursday he will attempt to make his mark as he unveils full-year results along with turnround plans, which will include ramping up the number of fibre lines it plans to install, according to people with knowledge of the proposals.
BT has already moved to freeze its dividend payments for the 2019 and 2020 financial years, preserving its £1.5bn payout, but Mr Jansen could justify a cut thereafter if investors are convinced of the long-term growth prospects of investing in fibre. Some large shareholders would even back an immediate dividend reduction to support Mr Jansen’s strategy, according to a person with knowledge of the situation, but the shares could be hit as this would reverse the reassurance given by Jan du Plessis, chairman of BT, to maintain the payouts for the next two years.